Description

The Invesco Communications S&P US Select Sector UCITS ETF Acc endeavors to replicate the net total return performance of its benchmark, the S&P Select Sector Capped 20% Communications Index, after deducting all fees. This benchmark specifically measures the performance of companies within the communication services sector of the S&P 500 Index. Constituents are weighted based on their float-adjusted market capitalization, with each component capped at 19%, and any excess weight redistributed across other uncapped holdings. To meet its investment goal, the fund typically holds a diversified basket of equities that are expected to generate most of its returns, though these assets usually differ from those directly comprising the Reference Index. Furthermore, the ETF utilizes unfunded swaps with approved counterparties. These agreements are designed to exchange the difference between the returns generated by the fund's equity holdings and the Reference Index, thereby aiming for a closer and more consistent performance match than physical replication alone could provide. It is important to note that while the fund's primary objective is to mirror the net total return index, the swaps employed reference a version of the index optimized for withholding tax. As a result, the ETF's performance before the deduction of fees is likely to outperform the standard net return index. This ETF is passively managed, meaning an investment constitutes the acquisition of units in an index-tracking fund, not direct ownership of the underlying assets.